Market Trends of Jiangsu Data Center Industry
Mega data center facilities are anticipated to witness growth during the forecast period.
- Virtualization has driven the data center industry over the years. Companies in the region have sought to reduce infrastructure by focusing IT operations on fewer, more highly utilized machines. This process has led to a wider view of data centers in general. Companies operating multiple data centers can focus their facilities on fewer and larger implementations to decrease complexity and costs.
- Depending on their locations, implementing mega data centers can allow a company to enjoy advantages of certain local benefits, such as tax incentives, low energy prices, climate, or availability of alternative energy sources. Thus, mega data centers result from attempts to minimize cost and maximize profit. Such factors in the Jiangsu region attract local and global players to develop mega-data centers.
- Chindata Group Holdings Pvt Ltd and Space DC Pte Ltd have four mega facilities each, followed by Princeton digital group with three facilities. in China.
- These companies are further projected to drive the mega-sized data center segment, with a combined capacity of facilities under construction of 360 MW by 2029. These constructions are being done primarily in Jiangsu and other regions owing to tax incentives on electricity and land being offered by local governments.
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BFSI segment to grow at a noteworthy pace.
- Many banks maintain their own data centers, but it has been observed that the trend is changing due to fluctuations in the banks' profits. Also, maintaining a data center is cumbersome, owing to the cost drain on IT, real estate, and operations, as it requires proper cooling, security, and power facilities. This can act as a challenge for the BFSI industry during the forecast period.
- The banking and finance sector is one of the largest data generators, and the need for a data center to regulate the cost of operations is a primary driver. Finance and banking structures use data centers to store customer records, employee management, transactions, and electronic banking services, such as remote banking, telebanking, and self-inquiry, which need data centers to function.
- Data centers, as infrastructure, are believed to be the future of finance. Many institutions have created private cloud systems to accommodate massive network, storage, and server capacities to support their retail financial centers, ATMs, and active online accounts.
